The Preventive role of Corruption in attracting Foreign Direct Investment  (Case Study: Organization of the Islamic Conference (OIC))

Vahed Rasuli, Shirin; Tayyari, Maryam

The Preventive role of Corruption in attracting Foreign Direct Investment (Case Study: Organization of the Islamic Conference (OIC))

Document Type : Review Article

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Abstract

Abstract According to Foreign Direct Investment is as important factor for growth and development of countries, especially developing countries, hence in this article by review of the literature studies, an attempt is made to look into the mechanism of and the relationship between FDI and corruption by using a Panel Data Model for thirty eight countries and the period 2001-2014. The results point to a positive relationship between control of corruption and FDI, so has an affect with positive and significant coefficient. The implications of the results of this paper are the public policies should aim to reduce corruption levels because it has a negative effect on FDI. Moreover, a significant relationship and positive exists between the FDI with market size and openness index for the period under study. Also the elasticity between FDI with inflation and foreign debt is negative and significant. Keywords: Corruption, Foreign Direct Investment, Organization of the Islamic Conference (OIC)), Panel Data

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